The Punjab Cabinet today decided to hike bus fares by 10 paise per kilometre and also approved lowering of value added tax (VAT) on pulses from 4 per cent to 1 per cent,to check food prices. The ministers met under the chairmanship of Deputy Chief Minister Sukhbir Singh Badal as Chief Minister Parkash Singh Badal is in USA. Bowing to market compulsions and the hefty hike in the wage bill of both Punjab Roadways and PRTC,the ministers decided to hike bus fares by 10 paise per kilometre. With this hike,both government transport undertakings will get additional revenue of Rs 75 crore per year. With this,PRTC will eliminate its losses entirely while Punjab Roadways will be able to recoup 50 per cent of its losses. The Central government has increased the price of diesel by 16 per cent (Rs 4.83) since January 2010. In addition to this,the expenses of Punjab Roadways and PRTC have increased by almost 40 per cent on account of increase in salaries due to the acceptance of the recommendations of the Fifth Punjab Pay Commission,increase in dearness allowance (DA) from 27 per cent to 45 per cent since January,2010,increase in the prices of spare parts by 10 per cent,increase in prices of tyres by 46 per cent and increase due to annual increments and toll revision. The wage bill of Punjab Roadways has gone up from Rs 136 crore to Rs 186 crore on account of these increases. Its losses during 2009-10 amounted to Rs 83 crore and are likely to rise to Rs 92 crore. Similarly,PRTC has been incurring heavy losses and on account of these losses it has not been able to pay retirement benefits to its ex-employees,which have risen to Rs 19 crore. In a recent judgment passed by the Punjab and Haryana High Court,the salaries and vehicle facilities of PRTC officers have been stopped for its failure to pay retirement benefits. Bus fares in the adjoining states of Haryana,Himachal and Uttarakhand are already higher than those in Punjab. Per-kilometre bus fares in the three states are 62.05 paise,71.12 paise and 63 paise respectively,against 56 paise in Punjab. The meeting also approved reduction of VAT from 4 per cent to 1 per cent and levy of VAT at the rate of one per cent on unbranded besan. The meeting also approved amendment in schedule A,B and C of Punjab VAT Act 2005 to rationalise it. However,VAT in the case of RCC pipes has been reduced from 12.5 per cent to 5 per cent,and to 8 per cent for spectacles,goggles and sunglasses. The Cabinet also took decisions approving amendments in various archaic revenue Acts to give relief to people,as per recommendations of Governance Reforms Commission. It approved amendments in Punjab Security of Land Tenures Act 1953,Pepsu Tenancy and Agricultural Land Act 1955 and Punjab Land Revenue Act 1887,as per recommendations of Punjab Governance Reforms Commission,primarily to reduce the level of appeals,simplifying the revenue acts and make them people-friendly.
